If you're self-employed, one tax benefit you can take advantage of is the deduction for meals and entertainment. As long as the meal takes place when you are conducting business, you can deduct the full cost. Unlike other tax deductions, however, the meals and entertainment deduction is only 50 percent deductible. Figure out your meal deduction by making a couple of calculations.

1. Gather your meal receipts for the tax year.

2. Separate the receipts into two categories: receipts for meals while traveling or away from home, and receipts for business meals while not traveling.

3. Add up the receipts for meals while not traveling.

4. Decide whether you want to take the standard meal deduction or actual cost deduction for meals away from home. The standard deduction is a daily rate set by the IRS. If you decide to take the actual cost deduction, add up all of your traveling receipts.

5. Add the totals from steps 3 and 4 together.

6. Multiply step 5 by .5. This is your self-employed meal deduction.

Things Needed

Calculator

Business receipts for meals

Tips

To claim a meal deduction when not traveling, more than one person associated with the business must be present at the meal.

Standard meal allowances differ according to where you live. The deduction also changes frequently. Refer to IRS Publication 535 Business Expenses to find out what the standard deduction is for the tax year in your location.

About the Author

Stephanie Ellen teaches mathematics and statistics at the university and college level. She coauthored a statistics textbook published by Houghton-Mifflin. She has been writing professionally since 2008. Ellen holds a Bachelor of Science in health science from State University New York, a master's degree in math education from Jacksonville University and a Master of Arts in creative writing from National University.